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Condensing Unit Market Size, Share Global Analysis Report, 2022 – 2028
Condensing Unit Market Size, Share, Growth Analysis Report By Application (Commercial, Industrial, and Transportation), By Type (Water-Cooled, and Air-Cooled), By Refrigerant Type (Hydrocarbons, Fluorocarbons, and Inorganics), By Function (Refrigeration, Heat Pumps, and Air Conditioning), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2028
Industry Insights
[200+ Pages Report] According to the report published by Facts Factors, the global condensing unit market size was worth around USD 38.5 billion in 2021 and is predicted to grow to around USD 51.15 billion by 2028 with a compound annual growth rate (CAGR) of roughly 8% between 2022 and 2028. The report analyzes the global condensing unit market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the condensing unit market.
Market Overview
A condensing unit is an assembly of various mechanical parts that create a refrigeration system. It consists of fan motors, a condenser, a compressor, mounting plates, and controls. They are temperature-controlling devices widely found in heat pumps, air conditioners, chillers, and refrigerators. All of the connected sub-parts are used to work on a gas form called refrigerant that is created by energy movement in heat form. The refrigerant then passes through a system of coils while the air around the coils leads to the heating or cooling of surrounding spaces. Condenser’s work is managed by fans, electronic controls, pumps, and fans. A key identification of a condensing unit is that they apply extreme pressure on the gas to convert it to liquid form. This process forces the energy stored out in form of heat followed by the circulation of cooled liquid throughout an enclosed system while absorbing heat when returning to the compressor.
Key Insights
- As per the analysis shared by our research analyst, the global condensing unit market is estimated to grow annually at a CAGR of around 8% over the forecast period (2022-2028)
- In terms of revenue, the global condensing unit market size was valued at around USD 38.5 billion in 2021 and is projected to reach USD 51.15 billion, by 2028
- Due to a variety of driving factors, the market is predicted to rise at a significant rate
- Based on type segmentation, air-cooled was predicted to show maximum market share in the year 2021
- Based on application segmentation, the commercial was the leading application in 2021.
- On the basis of region, Asia-Pacific was the leading revenue generator in 2021
Covid-19 Impact
The global market cap witnessed high growth for condensing units in the healthcare sector as well as for residential places. This was driven due to the increased patient influx during the pandemic. However, the industrial and commercial demand for condensing units decreased considerably in the first two quarters of 2020 as most of the industrial units were entirely closed for operations.
Growth Drivers
- Growing retail sector to propel market growth
The global condensing unit market is projected to grow owing to the increasing retail sector across regions. The growth may be specifically directed to the increasing number of supermarkets and hypermarkets owing to the growing population and subsequent demand for consumer products. Although the retail sector is highly developed in the first world countries, the growth is growing at a significant value in emerging countries like India and China which are home to more than 50% of the world’s population. The increasing number of players, domestic and international, and the rise in investments may also help generate more revenue during the projection period.
Restraints
- Stringent laws regulating the environmental impact to restrict market expansion
The global market may face restricted growth owing to the prevalence of stringent laws regulating the environmental impact of excessive use of refrigerators and air conditioners that are known to be contributing to the increasing global warming. For instance, fluorocarbons used as refrigerants are known to hurt the ozone layer.
Opportunities
- Growing technological advancements to provide excellent growth opportunities
The global condensing unit market players have been consistently working toward managing the environmental impact of condensing unit applications by developing more eco-friendly refrigerants. The higher adoption of advanced technology is expected to help reduce the replacement rate and improve the durability and efficiency of the product. These factors may attract more consumers in the coming years.
Challenges
- High cost of the unit to pose as a major challenge
One of the challenging situations for players in the global market is the high cost of condensing units which is directly proportional to the efficiency and the output requirements. As per official data, condensing units may cost anything between USD 850 to USD 3000 making it unaffordable for a large segment of potential consumers thus acting as a major growth barrier.
Segmentation Analysis
- The global condensing unit market is segmented based on application, type, refrigerant type, function, and region
Based on application, the global market segments are commercial, industrial, and transportation. The global market may be led by the commercial segment in the coming years driven by the growing strategic measures undertaken by key market players to expand global footprint. For instance, as per Cooling India, around 60 to 70% of refrigeration energy consumption is accounted for by condensers and compressors.
Based on type, the global market divisions are water-cooled and air-cooled, with the latter dominating the global market owing to its ease of installation and lower maintenance cost as compared to its counterpart. For reference, heavy-duty air compressors are known to function on 220-volt currents.
Based on refrigerant type, the global market divisions are hydrocarbons, fluorocarbons, and inorganics. Currently, the global market witnessed the highest growth in the fluorocarbons segments as they are currently widely used in air-conditioners. In 2020, the global air-conditioning market was valued at USD 106.65 billion.
Based on function, refrigeration, heat pumps, and air conditioning are the main global market segments with the cold storage sector driving the demand for the air conditioning segment. The global cold storage market may grow at a CAGR of 12.56% by 2028. The industry deals with facilities that store food-items that would otherwise get easily spoilt when kept in normal conditions.
Recent Developments:
- In August 2021, Embraco, a world leader in refrigeration technology, announced the launch of a new portfolio of refrigeration condensing units specially designed for the Japanese market. The products in the new portfolio have applications in supermarket display cases, kitchen reach-ins, refrigerators for medical applications, and island freezers
- In May 2022, Secop, a Germany-based producer of refrigerators for medical applications, launched a new segment of condensing units called R290, designed to meet the new European Ecodesign Directive, while also optimizing the performance and efficiency of the new product
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 38.5 Billion |
Projected Market Size in 2028 |
USD 51.15 Billion |
CAGR Growth Rate |
8% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2028 |
Key Market Players |
Carrier Global Corporation, GEA Group Aktiengesellschaft, Danfoss, Emerson Electric Co., Heatcraft Refrigeration Products LLC, BITZER SE, SCM Frigo S.p.A., Baltimore Aircoil Company, Officine Mario Dorin., and others. |
Key Segment |
By Application, Type, Refrigerant Type, Function, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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Regional Analysis
- Asia-Pacific to witness high CAGR during the forecast period
The global condensing unit market is projected to be dominated by Asia-Pacific in the coming years following the trend of the previous year. The regional growth may be attributed to the rapidly increasing industrialization of countries like China, India, Japan, South Korea, and others. China may be the highest contributor in the regional market owing to the country’s goal of becoming a world leader in the coming years leading to the Chinese government investing heavily in the industrial segment of the country aided by increased interest of international players in the Chinese market. Growth in Europe may be driven by the presence of a large number of players with consumers across the globe driven by the increased strategic measures as well as growing research & innovation to develop condensing units with improved efficiency and eco-friendly results.
Competitive Analysis
- Carrier Global Corporation
- GEA Group Aktiengesellschaft
- Danfoss
- Emerson Electric Co.
- Heatcraft Refrigeration Products LLC
- BITZER SE
- SCM Frigo S.p.A.
- Baltimore Aircoil Company
- Officine Mario Dorin.
The global condensing unit market is segmented as follows:
By Application
- Commercial
- Industrial
- Transportation
By Type
- Water-Cooled
- Air-Cooled
By Refrigerant Type
- Hydrocarbons
- Fluorocarbons
- Inorganics
By Function
- Refrigeration
- Heat Pumps
- Air Conditioning
By Regional Segment Analysis
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Denmark
- Sweden
- Norway
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Table of Content
Industry Major Market Players
- Carrier Global Corporation
- GEA Group Aktiengesellschaft
- Danfoss
- Emerson Electric Co.
- Heatcraft Refrigeration Products LLC
- BITZER SE
- SCM Frigo S.p.A.
- Baltimore Aircoil Company
- Officine Mario Dorin.
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